The Babcock & Wilcox Co. said Tuesday today that its subsidiary, B&W Nuclear Operations Group Inc. (B&W NOG), has received a contract from the U.S. Naval Reactors Program worth up to $1.3 billion in funding over the next three years if fully executed.

An order for $508 million has been released for work to begin immediately. The contract covers the manufacture of nuclear components to support U.S. defense programs, including the manufacture of U.S. Naval nuclear power systems for submarines and aircraft carriers.

The initial funding will be followed by various releases during fiscal years 2014, 2015 and 2016, which is in addition to existing business awarded to B&W NOG under other multi-year and annually awarded contracts.

“We are very pleased with this contract and the opportunity it affords B&W to continue to support our country, our customer, our employees and our shareholders,” Peyton S. Baker, President B&W Nuclear Operations Group, said in a statement. “The reliability of our nuclear products will again be called on to help ensure that our Navy can successfully meet its missions.”

Work under the contract will be performed at B&W NOG’s facilities in Lynchburg, Mount Vernon, Ind., and Barberton and Euclid, Ohio.